FLASHBACK: Mica’s July Transportation Proposal

Seven months ago, House Transportation and Infrastructure Committee Chairman John Mica (R-FL) unveiled a six-year, $230 billion proposal. At the time he said:

“Given U.S. House rules and budget constraints, this proposal maximizes the value of our available infrastructure funding through better leveraging, streamlining the project approval process, attracting private sector investment, and cutting the federal bureaucracy.”

At $38.3 billion per year, Mr. Mica’s proposal would have been fully paid for by the Highway Trust Fund. Updated figures from CBO predict more than $234 billion will flow into the HTF over the next six years – that is $39 billion per year!

By comparison, H.R.7 – the American Energy and Infrastructure Jobs Act of 2012 (H.R.7) – would authorize $262.8 billion over five years, or $52.6 billion per year.

The full press release from Mr. Mica’s committee is below. Unfortunately, the link “for a more detailed presentation of the reauthorization proposal” is broken.

“Given U.S. House rules and budget constraints, this proposal maximizes the value of our available infrastructure funding through better leveraging, streamlining the project approval process, attracting private sector investment, and cutting the federal bureaucracy,” Mica said. “Most importantly, this six-year proposal provides the stability states need to plan major transportation improvements and create long-term jobs.

“While some continue to advocate the same old tax-and-spend approach, I prefer a new direction,” Mica continued. “More short-term extensions or a two-year bill are recipes for bankrupting the Highway Trust Fund. These options will cut the legs from under our states and hamper their ability to move forward with many needed, large-scale projects.

“This long-term plan is the only fiscally responsible proposal and will ensure the continued solvency of the Highway Trust Fund,” Mica said.

Mica and Rep. Duncan today also invited Democrat Committee leaders who are asking for higher spending levels to appear with them before the Ways and Means Committee to discuss revenue issues.

“This is an important first step in implementing a six-year highway plan that will dramatically improve the efficiency and safety of the Nation’s transportation system and stimulate the economy by creating thousands of long-term jobs,” said Highways and Transit Subcommittee Chairman John J. Duncan, Jr. (R-TN). “The plan we are laying out today takes away the red tape and streamlines a process that has become entangled with bureaucracy. I am looking forward to advancing a bill through the full Congress.

“This proposal for a new direction in the transportation reauthorization bill is an important step in the right direction for our nation,” said Railroads, Pipelines and Hazardous Materials Subcommittee Chairman Bill Shuster (R-PA). “This is a bold vision for a reauthorization that focuses on multiple modes, including rail and hazardous materials transportation as well as our highway system. We can do this with America’s rail system at the same time we improve our highways.”

“I applaud the Committee for recognizing the critical role the maritime industry plays in our nation’s economy, global commerce and job creation. It is therefore appropriate to include a maritime title in this multi-year legislation for the first time,” said Coast Guard & Maritime Transportation Subcommittee Chairman Frank LoBiondo (R-NJ). “It is our shared goal to improve coordination between agencies and streamline the bureaucratic process to increase efficiency of our marine transportation system.”

“While the U.S. economy is fueled by maritime commerce and millions of Americans depend on jobs created by imports, exports, and the commercial shipping industry, government red tape has stifled the flow of commerce and our ability to effectively build and maintain our maritime infrastructure,’ said Water Resources and Environment Subcommittee Chairman Bob Gibbs (R-OH). “Today’s proposal cuts through the bureaucratic red tape, streamlines project delivery, eliminates double taxation on shippers, enhances our ports and waterways, and strengthens our economic foundation to help us to compete globally. These reforms are critical as we work to grow our economy and create jobs.”

“As a freshman I came to Washington to help create jobs, spend responsibly and empower states; this bill would accomplish those goals,” said Highways and Transit Subcommittee Vice-Chair Richard Hanna (R-NY). “One of the most important aspects of this proposal is that it provides predictability for states and public transit agencies to plan for multi-year projects. The Stimulus forced states to focus on short-term projects like pavement resurfacing and guard rail replacements. The long-term certainty provided by a long-term bill empowers states to take on major projects including bridge replacements, highway interchange improvements and investment in our nation’s transit systems. These types of projects will provide jobs for years to come and have the potential to have a real impact on the unemployment rate in the construction industry.”

The proposal authorizes approximately $230 billion over six years from the Highway Trust Fund for highway, transit, and highway safety programs. These funding levels match current revenue being deposited into the Highway Trust Fund and comply with House rules that do not permit authorization of more funds than those collected.

Congress will not support a gas tax increase, and this proposal does not raise taxes. Without an increase in revenue, other current options, such as a two-year bill, the Administrations’ proposal, or extending expired law at the current funding levels, all lead to the Highway Trust Fund going broke by 2013.

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